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Releaf Group Ltd

Australia
Health & Wellness

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$14,004 AUD raised of $1.00m AUD (1%)
Raise Target
$
1.00m
AUD
EQUITY OFFERED
8.08
%
PRE-MONEY VALUATION
$
43.32m
Min. Investment
$
2,000
Price Per Share
$
0.22
Raise Currency
payment methods
AUDBTCUSDT
This opportunity is available to sophisticated and professional investors only. Always consider the risk warning and your eligibility to invest.
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Overview

Founded in 2017, Releaf Group Ltd (RGL) is an Australian unlisted public company founded following legalisation of medicinal cannabis in the state of Victoria. In early 2020, RGL became the first company in Australia to establish dispensary (pharmacy) and medicinal cannabis clinics under one roof.

With an early mover advantage, RGL is set to capitalise on forecasted growth and industry explosion, initially establishing 200 branded clinics and dispensaries across the Australia/NZ/Asia region, and extending into South Africa and the United Kingdom over the next 5 years.

Despite COVID-19, cannabis is one of the fastest growing industries on the planet – growth that can be attributed in part to increased access to telemedicine appointments during the global pandemic.

A vertically integrated business model, including Releaf-branded products, proprietary medicines, clinic management software, a global online research and educational platform, and a global direct-to-consumer supply chain, will ensure RGL is a dominant player in Australasia with solid international growth potential.

Problem

With the pressures of general life, compounded with the anxiety surrounding COVID-19 impacting sleep and mental health, suicide and self-harm is on the rise.  

In addition, the associated harms of prolonged opioid use for the treatment of chronic pain has serious implications on public health that can be managed safely with alternative plant treatments.

The global opioids market size is estimated to reach $29.4 billion USD ($43.6 billion AUD) by 2026, expanding at a CAGR of 1.8%. Rising prevalence of disease conditions with chronic pain, such as cancer, lower back pain, arthritis, and fibromyalgia, is driving the opioids market.

Internationally, chronic pain has been found to be a very expensive condition. The total financial costs of chronic pain in the US were $635 billion vs. heart disease ($309 billion), cancer ($243 billion), and diabetes ($188 billion).

Locally, 3.24 million Australians were living with chronic pain in 2018 of which 53.8% are women and 68.3% are of working age. For the majority (56%) of Australians living with chronic pain, their pain restricts which activities they are able to undertake. Estimates of the economic burden of chronic pain on society do not do justice to the extent of suffering and reduced quality of life experienced.

Solution

RGL is passionate about bringing about positive social change with a focus on health, wellness and heathy lifestyle choices.

A key goal is to tackle pain and mental health industries with alternative plant-based Cannabinoid medicines and therapies. We hope to continue assisting thousands of patients undergoing chemotherapy, suffering from Parkinson’s disease, sleep disorders, Tourette’s syndrome, spasticity and cancer, in the hope that they will benefit from Releaf Clinics

A growing number of global governments also see that prohibition of a natural plant causes more harm than it prevents. Many territories have or are moving towards developing a regulated legal market in cannabis and CBD, that is also aligned with RGL’s strategy in the recreational sector with MULL products and MULL Cafe Dispensary Franchises.

Product

Market

Acceptance for Medicinal and Recreational Cannabis is exploding internationally. An increase in public awareness in Australia and New Zealand has led to double digit growth as access infrastructure is being established.

The legal cannabis market is expected to be worth US$1.55 billion by 2024 in Australia, New Zealand and the surrounding islands, with medicinal cannabis accounting for approximately 40% of the market.

Australia is expected to account for 79% of the region’s overall market by 2024, due to a comparably larger population and higher household disposable income. RGL is well-placed to take first-mover advantage as the region’s cannabis market matures.

The global medicinal cannabis industry is a dynamic, high growing market to be valued globally at US$76 Billion by 2027.

Competition

Traction

In July 2020, Releaf Group Ltd (RGL) became the first legal clinic and dispensary cannabis franchisor in Australasia. RGL has a head office in Melbourne, Australia with a wholly owned subsidiary, Releaf Ltd, based in Auckland, New Zealand.

The company owns inbound phone number 1300 DISPENSARY and ranks number 1 on Google search for “Dispensary” in APAC.

RGL has pioneer sites in St Kilda and Bentleigh, Victoria, and is on schedule to have 12 new locations by the end of the 2021 fiscal year.

In total, the company is planning to establish 200 franchises over the next 5 years, with planned sites purchased outright in most instances, then leased back to franchisees, likening RGL’s business model to “the McDonalds of Cannabis”.

Business Model

Releaf

Releaf Clinics & Dispensaries (Medical)

  • Doctors may purchase a new franchise or transition their existing pharmacy/practice into a Releaf Dispensary.
  • Releaf patients enjoy a range of integrated healing, patient centric medical services with a focus on cannabinoid treatments, in a one stop environment from consultation to prescription, under the one roof.
  • Releaf Clinics franchisees are able to select their own mix of allied health services to supplement doctors consultations, including but not limited to: IV infusions, transdermal injections, psychology and mental health services, physiotherapy, osteopathy and exercise physiology.
  • Profit margins on Releaf medicines and supplements are up to 100% compared with traditional pharmacies that only offer their franchisees approximately 20% to 30% margins.

MULL Cafe

MULL Café (Recreational)

MULL Café will be the world’s first Australian-themed franchise dispensary. Releaf Group is commencing the rollout of MULL Cafés in new legal markets with a view to expand into South Africa, Hong Kong and London.

The company plans to be at the forefront of new legal markets whether the local legislation permits full recreational or CBD only.

MULL-branded products include:

  • Dried flower
  • Vapes and filled cartridges
  • Extracts
  • Edibles
  • Cannabutter
  • CBD and THC-infused beverages

Clinican (Cloud Platform)

Clinican is a bespoke cannabis industry cloud platform. It is an integrated practice management software (PMS) with an electronic medical record (EMR) solution designed to enable end-to-end workflows for operating a medicinal cannabis clinic and dispensary.

Features include:

  • Telehealth video consulting
  • Patient app (Android & iOS)
  • Online bookings/payment gateway
  • Integrations with Tyro, Medicare, Easyclaim, eRx for digital scripts, MIMS for prescribing & Xero for accounting
Canacruit

Canacruit (Recruitment & Advisory)

Canacruit, a subsidiary of RGL is the leading cannabis recruitment agency in Asia Pacific that focuses on building a cannabis community of skilled professionals, one job at a time.

Founded in 2020 from the high demand to place specialised medical staff, the Canacruit team build and scale teams for an emerging, high-growth industry that some consider the future of healthcare and social justice reform.

Canacruit partners with cannabis companies at any stage of their growth to provide key talent advisory.

ICCM

ICCM (Research, Development & Education)

The International College of Cannabinoid Medicine (ICCM), a wholly owned subsidiary of Releaf was established in 2020 to conduct cutting-edge research into the efficacy of medicinal cannabis for prevalent diseases, in the hope of decreasing the healthcare and economic burden both locally and internationally.

ICCM has a professional video education streaming platform and podcast focused on leading scientific research by industry experts on various cannabinoid topics. The content is primarily targeted at international healthcare professionals via a limited freemium version or via an annual subscription for full premium access.

Releaf Pets

Releaf Pets (Veterinary)

The use of cannabis for animal species is an area of growing interest and Releaf is planning to establish one-stop franchises that will include veterinary services and an animal cannabinoid dispensary.

The global CBD pet market size was valued at USD 27.7 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 40.3% from 2020 to 2027. The perceived benefits of cannabis, high awareness among pet owners, and preference for natural pet supplements have led to an upsurge in market growth.

Outlook

RGL is a disruptive player for APAC with an early-mover advantage and a unique vertically-integrated business model. RGL is also in the process of setting up cultivation and manufacturing facilities that are expected to launch in 2021 to support exclusive product lines.

Individual medical cannabis clinics are now selling internationally for over $10 million USD each.

Earnings Multiple

The $33 million AUD valuation is less than x3 times earnings for Year 2. High growth companies in a disruptive new industry can trade at x100 earnings. The ASX Index trades at 14-16 times earnings for mature companies.

Customer Lifetime Value

The lifetime value of a Releaf patient/customer includes revenue generated from initial and ongoing doctor consultations, prescriptions filled in pharmacies, as well as purchase of retail products. These figures have not been included in our financial valuation.

  • Initial annual value per patient: $600 in consultation fees & min. $400–$1,000 in product
  • Value after initial ramp period is $1,000 per annum


Investment

Capital investment is required to accelerate Cultivation, Manufacturing and Dispensary growth.

For more information, financials and access to the Deal Room, please register your interest now.

Risks

The Company’s Franchise service and sales pipeline is still in the early stage of development

The Company has a limited operating history and is not yet profitable. The Company is operating in an area of the market which has only recently been allowed to operate legally. The commercial success of the company’s franchise services and future products will depend on many factors, including the ability to demonstrate a successful sales strategy.

If Releaf is unable to increase awareness and acceptance of our services  and products within the healthcare profession, it may not be able to successfully commercialise its product and services longer term. There is also a risk that Releaf will not be able to successfully expand its sales and marketing programs. This will have a material adverse effect on the Company’s potential revenue and prospects.

The Company will need additional funding to implement its business strategy

The Company’s current cash reserves (plus the net proceeds of the Offer) will not be adequate for its funding requirements beyond the next 18–24 months.

The Company will need to obtain additional funding to continue operations and execute its business strategy. Releaf cannot guarantee the availability of funds in the future, or that the funds will be available on favourable terms. If Releaf is unable to raise these funds, it could adversely impact the Company’s business and prospects.

Change in regulatory environment

Medicinal cannabis regulation is relatively new in Australia and around the world. It is possible that governments, including the Australian commonwealth and state governments will continue to change these regulations. Changes in regulations may make previously identified business categories less profitable or not commercially feasible.

The Company will need to navigate this legal landscape in a way which allows it to continue its operations and to execute its business strategy, and to make changes to the strategy based on changes in the legal environment without affecting its longer plans for commercialisation of its business.

New industry risks

The medicinal cannabis industry is in its early stages of development and as the regulatory landscape changes and becomes simpler to operate there may be multiple competitors operating in the same space in the future that could affect long term sales and margins.

Restrictions in the laws prevent Releaf from properly informing potential customers about the benefits of medicinal cannabis products and services. This will make it difficult for Releaf to distinguish itself effectively from competitors.

About

Australia’s first dedicated clinic and dispensary group

Releaf Clinics was formed to simplify the consultation process and enable access to medicine for patients in need. We are proud to offer a fully integrated healthcare service – incorporating medical clinics, pharmacies and retail.

Team

Gary Mackenzie
Co-founder & CEO

A successful entrepreneur with over 25 years management experience, Gary previously founded AC&T, Australia’s largest outsourced national sales and marketing group serving the telecommunications and energy sectors.

3 years ago, after recovering from kidney cancer, Gary decided to bet on himself and his ability to connect investors and passionate people in the Medicinal Cannabis space to start an amazing journey in the future of healthcare. Today, Gary is a thought leader in the cannabis sector in Australasia.

Scott McDonald
Co-founder & Director

Scott is an accomplished sales and business development leader with proven experience in identifying and analysing market opportunities. Scott worked on the launches of both Foxtel and Optus, and worked with three major companies in the deregulation of the power industry in Australia.

Scott was granted a Medicinal Cannabis Cultivation Licence for Victoria by the ODC December 2018 and is an early Medicinal Cannabis pioneer in Australia.

Chris Hansen
CFO & Director

Chris has an extensive finance and operational background in commercial property industry, including 12 years with the Rialto Towers Property Group. More recently, Chris has provided consulting to established businesses and start-ups in areas of general management, property and asset management and finance.

As an original team member of the Releaf Group, Chris has developed an extensive understanding of the financial workings of the cannabis sector and is an integral executive director and board member.

Petra Tanidis
Group Implementation Director

Petra has vast experience across various business sectors as a successful entrepreneur and director with C-level skills in general management, patents, building construction and retail. Initially a GM with Releaf, Petra was instrumental in the company’s growth at the startup phase. Petra is responsible for the planning, construction and project management of the group’s Franchise sites Australia wide.

Dr. Sylvia Victor (PhD/MBA)
Director of Operations

Sylvia is an accomplished Research Scientist and author of several peer-reviewed publications. She has worked in various aspects of the healthcare industry including HealthTech software, Medical Devices, and Research & Development specialising in Medical Sciences & Biotechnology.

She holds a BSc (Biomedical Sciences) with 1st Class Hons from the University of Auckland (New Zealand), a PhD from the University of Tokyo (Japan) and an MBA from McGill University (Canada).

Prof. Kylie O’Brien (PhD)
Director of Research & Education

Kylie is a highly experienced academic and expert in the broad fields of integrative medicine, Chinese medicine and more recently, medicinal cannabis.

Prof O’Brien has been leading the way in medicinal cannabis education in Australia, having developed the first courses to receive Category 1 Continuing Professional Development points with the Royal Australasian College of General Practitioners in 2018.

She also developed the pathway through which doctors may be approved to become Authorised Prescribers of medicinal cannabis via the NIIM ethics committee.

David Crisci
Pharmaceutical Director & Advisor

David is CEO of Infinity Wellness Group which has 4 locations throughout South Australia. The Infinity brand is a fast-growing health and wellness brand specialising in pharmaceutical compounding, consulting, formulation development, R&D and innovative technologies.

David is Releaf’s founding pharmacist and is proprietor of its flagship dispensary in St Kilda. Over his career, David has procured an extensive knowledge of the medicinal qualities of cannabinoids, and he provides the group with the expertise and pharmaceutical know-how to become the market leader and leading cannabis brand in APAC.

Prof. Ian Brighthope
Advisor

Ian is Chairman and a Founding Director of The Australian College of Herbal Medicine, Founding Director and Board Member of the OMAA, Founder and Past Director of The Graduate School of Integrative Medicine and former President of the Complementary Healthcare Council of Australia.

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Yen Heng
Hi, will the raise go to the moon?
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123213
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Gary Mackenzie
from Releaf Group Ltd Team
gary
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June 10, 2021
Gary Mackenzie
from Releaf Group Ltd Team
testing 12.23 11 June
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whatsup
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Yen Heng
MOON when?!?!
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